Tax wiki
s. 93.2
PART I — Income Tax · DIVISION B — Computation of Income · SUBDIVISION I — Shareholders of Corporations Not Resident in Canada
Definitions
Not yet annotated · Text current to 2026-06-21 · section last amended 2014-12-16
Current text
The definitions in this subsection apply in this section.
equity interest, in a non-resident corporation without share capital, means any right, whether absolute or contingent, conferred by the non-resident corporation to receive, either immediately or in the future, an amount that can reasonably be regarded as all or any part of the capital, revenue or income of the non-resident corporation, but does not include a right as creditor. (participation)
Non-resident corporation without share capital
(2)For the purposes of this Act,
equity interests in a non-resident corporation without share capital that have identical rights and obligations, determined without reference to proportionate differences in all of those rights and obligations, are deemed to be shares of a separate class of the capital stock of the corporation;
the corporation is deemed to have 100 issued and outstanding shares of each class of its capital stock;
each person or partnership that holds, at any time, an equity interest in a particular class of the capital stock of the corporation is deemed to own, at that time, that number of shares of the particular class that is equal to the proportion of 100 that
the fair market value, at that time, of all the equity interests of the particular class held by the person or partnership
is of
the fair market value, at that time, of all the equity interests of the particular class; and
shares of a particular class of the capital stock of the corporation are deemed to have rights and obligations that are the same as those of the corresponding equity interests.
Non-resident corporation without share capital
(3)For the purposes of section 51, subsection 85.1(3), section 86 and paragraph 95(2)(c),
subject to paragraph (b), if at any time a taxpayer resident in Canada or a foreign affiliate of the taxpayer (in this subsection referred to as the “vendor”) disposes of capital property that is shares of the capital stock of a foreign affiliate of the taxpayer, or a debt obligation owing to the taxpayer by the affiliate, to — or exchanges the shares or debt for shares of the capital stock of — a non-resident corporation without share capital, that is immediately after that time a foreign affiliate of the taxpayer, in a manner that increases the fair market value of a class of shares of the capital stock of the non-resident corporation, the non-resident corporation is deemed to have issued, and the vendor is deemed to have received, new shares of the class as consideration in respect of the disposition or exchange; and
if the taxpayer elects under this paragraph and files the election in writing with the Minister on or before its filing-due date for the taxation year that includes the day on which the disposition or exchange occurs, paragraph (a) does not apply to the disposition or exchange.
Source: Justice Laws Website. Not an official version.
Historic text
This section has not been amended since it was enacted (2014, c. 39, s. 22), so there is no earlier version.
Earlier versions: Justice Laws point-in-time versions of the Act (from 31 August 2004), and CanLII (under “Versions”). On Justice Laws, each version of section 93.2 links to the one before it.
Enacting and amending legislation
- 2014, c. 39, s. 22
Text before 2004 is found in the annual Statutes of Canada cited above. Application and coming-into-force provisions are not part of the consolidation; see the amending Acts.
Cross-references
Citation
Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 93.2.